Tesla’s 2170 batteries for vehicles are made using Nickel Cobalt Aluminum Oxide (NCA), as opposed to the 2170 battery cells that power the company’s stationary energy storage products, which utilize Nickel Manganese Cobalt Oxide (NMC).

Musk has called the batteries “the best cell in the world that is also the cheapest cell” and says they have the “best energy density in the world.” While they will initially only be used in the Model 3, which is due to go into production next month, Tesla plans to eventually scale up to integrate them into the Model S and Model X, which are already in production.

This is exiting news for both the electric and autonomous vehicle industries as the batteries are pivotal to achieving the Model 3’s $35,000 price tag. As price decreases, general adoption increases, which will result in safer roads for drivers and pedestrians alike. Coupled with the environmentally friendly nature of the cars, Tesla’s Model 3 is looking like a serious game-changer.

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